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Options Trading News

August 27, 2013  Tue 9:23 AM CT

HAL: SEE CHART GET CHAIN FIND STRATEGIES
A trader apparently believes that oilfield-services company Halliburton will stay range-bound after coming off two-year highs reached yesterday.
 
optionMONSTER systems detected the sale of 5,000 April 45 puts for $2.95. This volume compares with previous open interest of just 4 contracts at that strike, so this is clearly a new opening position.

A little more than a minute later, a block of 175,000 shares was sold for $48.0286. Combined with the options, that creates a delta-neutral play that is looking for lower volatility. This means that the trader is counting on HAL to stay range-bound and/or for actual volatility to be less than that implied by the options. (See our Education section)

HAL is down 0.72 percent to $48.09, a day after hitting its highest levels in two years. Shares bounced off support at $40 in late June.
 
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